The stock market traded mixed Wednesday morning after Fed Chairman Jerome Powell indicated that an interest-rate increase is coming this month, and oil prices hit an 11-year high.
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The Nasdaq composite dipped 0.1%, while the S&P 500 gained 0.7%. Small caps led as the Russell 2000 jumped 1.6%.
The Dow Jones Industrial Average rose 0.7%. Dow component Salesforce.com (CRM) reversed lower after January-quarter earnings and revenue beat analyst estimates. The enterprise software company’s sales guidance was above expectations but its profit forecast missed views.
Volume fell on the NYSE and Nasdaq compared with the same time on Tuesday.
In testimony released before his 10 a.m. ET hearing in Congress, Powell said a rate increase at the March 15-16 Fed meeting is “appropriate.” But he added that the economic impacts of Russia’s invasion of Ukraine make the rate outlook murky.
“We will need to be nimble in responding to incoming data and the evolving outlook,” Powell said. Stock market futures gave up some gains after the prepared testimony was released before the market open.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33685.65 | +390.70 | +1.17 |
| S&P 500 | (0S&P5) | 4352.00 | +45.74 | +1.06 |
| Nasdaq | (0NDQC ) | 13616.69 | +84.23 | +0.62 |
| Russell 2000 | (IWM) | 202.67 | +3.18 | +1.59 |
| IBD 50 | (FFTY) | 38.15 | +0.88 | +2.36 |
| Last Update: 10:08 AM ET 3/2/2022 | ||||
The yield on the 10-year Treasury note climbed 8 basis points to 1.78%. The benchmark yield had slid about 28 basis points earlier this week as Russia pressed its invasion of Ukraine and nations placed more sanctions on Russia.
Stock Market Up Despite Oil Surge
The price of U.S. crude oil jumped 6.5% to $110.10 a barrel, the highest in 11 years. The OPEC+ group of major oil producers agreed to extend its existing goal of adding 400,000 barrels per day each month through April. OPEC+, which includes Russia, is under pressure to boost its target to help ease oil prices. But group members are struggling to produce enough oil even to meet current targets.
Fighting continued in Ukraine, where Russian forces shelled major cities but Ukrainians continued to offer stiff resistance.
Nordstrom (JWN) soared 30%. after the department store chain beat January-quarter profit expectations late Tuesday. The results extended a string of bullish results for major retailers.
Ross Stores (ROST) rallied nearly 8% after it also beat expectations. Both Ross and Nordstrom gave strong outlooks. The results followed Target (TGT) and Kohl’s (KSS) on Tuesday, which climbed after their holiday-quarter results.
Innovator IBD 50 ETF (FFTY) rallied nearly 2%.
Global Ship Lease (GSL) led the index with a nearly 5% gain that took the stock back above its 26.61 buy point. Miner Rio Tinto (RIO) rose 3.7% and is also above a buy point.
Economic Reports In Stock Market’s Eye
Besides Powell’s testimony, the other major economic news this morning is the ADP employment report, which showed a rise of 475,000 jobs in February. That’s well above economists’ forecasts for a 320,000 increase, according to Econoday. In another positive surprise, the January estimate went from a loss of 301,000 jobs to a gain of 509,000.
Peter Essele, head of portfolio management for Commonwealth Financial Network, noted a trend in which larger businesses are expanding jobs much more than small businesses. Small businesses (1-49 employees) shed jobs for the first time since April of 2020, while large businesses (500 or more workers) saw the third largest monthly job gain in 10 years.
“The dynamic in February is the extension of a trend that began in Aug 2021, where large business employment began to outpace small and medium business hiring in the recovery,” Essele said. “The trend may reflect changing preferences in the labor force, with workers pivoting toward larger-scale businesses that potentially offer more benefits and higher wages.”
Friday morning, the stock market gets the Labor Department’s February jobs report. Economists expect an increase of 390,000 nonfarm jobs.
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The post The Stock Market Trades Mixed As Powell Testifies; Oil Prices Top $110 A Barrel appeared first on Investor’s Business Daily.
